What Do We Mean by Inflation

question 5

Multiple Choice

What do we mean by inflation?

• A) The expansion of universe starting with the instant after the Big Bang
• B) A sudden expansion of the universe driven by the energy released when the strong and electroweak forces froze out from the GUT force
• C) The rapid expansion of the universe, driven by white dwarf supernova, that we still observe today
• D) The sudden release of photons when particles and antiparticles annihilate each other
• E) The photons released when electrons and protons first combined, forming the Cosmic Microwave Background Radiation

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Definitions:

Tax

A compulsory financial charge or levy imposed by a governmental organization in order to fund various public expenditures.

Price Elasticities

The responsiveness of the quantity demanded or supplied of a good to a change in its price.

Excise Tax

A tax charged on specific goods and services, such as tobacco and gasoline, intended to reduce their consumption or raise revenue.

Deadweight Loss

A loss in social welfare that occurs when market equilibrium is not achieved due to externalities or market control.